Do you realize you need to know almost as much about your competitors as you do your own business? Wonder which of your competitors poses a threat to your own customer base or is targeting your client base with marketing initiatives? Who most closely mirrors your unique offerings in the marketplace? Not being able to answer to these questions puts your business at a distinct competitive disadvantage.
A competitive analysis is the most efficient way to answer these questions. The best way to prepare a competitive analysis for your business is to outsource the project to marketing professionals. But, fact is that anyone can conduct and compile their reports. It can begin with some research and accurately compiling and answering the right list of questions about the competition.
Identify potential competitors
To clearly identify your existing competitors is only first part of the process. In order to accurately compile a competitive analysis, you have to identify potential competitors as well. Now how do you identify a competitor that doesn’t yet exist? The concept of trying to predict when a competitor may enter your industry sounds pretty far-fetched.
However, it is possible to study other businesses that operate within related industries and offer services that are similar in many ways to yours. By identifying and studying these potential competitors, you can help prevent your business from being caught off guard. This, in case they do decide to enter your industry and become a competitor. It’s very likely that they will prepare a competitive analysis of your industry before diving in!
businesses are not created equal
In almost every industry, there are a wide variety of companies competing for the same pool of customers. Now, should you consider all competitors equal if one competitor could outspend the others thousands of times over? Of course not!
Though you can’t outspend a large competitor on marketing, you also aren’t confined in the same ways that a franchise owner may be confined. You are in a position to develop new products and services that are superior in quality or are tailored to your local market. You’re in a position to stress “locally owned and operated” status in your limited advertising efforts.
unique is superior
So if you hope to level the playing field for your business a competitive analysis is strongly recommended. Then you can discover why your customers choose you and your business? After you have successfully completed your competitive analysis, it’s super important to identify what makes you and your business unique in the marketplace!